TSX Venture Exchange: NEV
VANCOUVER, Nov. 21, 2017 /CNW/ - Nevada Sunrise Gold
Corporation ("Nevada Sunrise" or the "Company") (TSXV: NEV) is
pleased to announce it has signed a letter agreement to acquire a
100% interest in the Lovelock Cobalt Mine (the "Lovelock Mine", or
the "Property"), located in Churchill
County, approximately 100 miles (150 kilometres) east of
Reno, Nevada.
"The acquisition of the Lovelock Mine is yet another facet of
our exploration operations in Nevada," said Warren
Stanyer, President and CEO of Nevada Sunrise. "The mineral
endowment of Nevada is vast and
the Lovelock Mine is a hidden gem within that legacy, considering
the renewed interest in cobalt during the past year. Nevada Sunrise
looks forward to applying modern exploration methods to the
Lovelock Mine, which in today's terms could be judged as artisanal
workings."
About the Lovelock Mine
The Lovelock Mine property area consists of 35 unpatented claims
in the Cottonwood Canyon area of Stillwater range totaling approximately 700
acres (283 hectares). It was discovered by George Lovelock and Charles Bell about 1880. According to U.S.
Government annual reports, the Lovelock Mine saw limited production
of nickel, copper and cobalt beginning in 1883. The primary cobalt
mineral was identified as "cobaltite", a compound of cobalt, nickel
and arsenic. Records of a geochemical analysis from that era
indicate that the average composition of the cobaltite contained
17.30% cobalt and 13.62% nickel. The mine operated
from 1883 to 1890 to the 100 foot level, reporting 500 tons of
cobalt and nickel mineralized material shipped to England for processing. After intermittent
production, an English company attempted smelting on site in 1898
but little or no production was made (Source: "Mineral Resources of
the United States for 1885",
1886). No further production from the Lovelock Mine is known for
well over a century.
Terms of the Agreement
Nevada Sunrise intends to execute a definitive agreement (the
"Agreement") within 30 days of the effective date of the letter
agreement, which was signed on November 11,
2017. The Agreement will provide for the Company to earn a
100% interest in the Property in consideration for cash payments
and common shares payments to an underlying vendor (the "Vendor")
payable over 3 years from the signing of a definitive agreement,
subject to a 2.0% net smelter returns royalty ("NSR"), as
follows:
- A non-refundable $3,000 cash
payment to be paid by Nevada Sunrise as a deposit for an exclusive
45-day period during which the Company will conduct due diligence
on the Property;
- On the later of TSX Venture Exchange ("TSXV") approval and
signing of the
Agreement:
$15,000 in cash and 200,000 common shares of the
Company;
- 1st Anniversary: $20,000 in cash and 200,000 common shares of the
Company;
- 2nd Anniversary: $25,000 in cash and 250,000 common shares of the
Company;
- 3rd Anniversary: $30,000 in cash and 300,000 common shares of the
Company.
Closing of the acquisition is subject to completion of due
diligence review of the Property, including a site visit to the
sole satisfaction of Nevada Sunrise, and acceptance of the
Agreement by the TSXV. Nevada Sunrise will have the right to
accelerate the timing of cash payments to the Vendor at its
discretion. On or before the 10th anniversary of the execution of
the Agreement, Nevada Sunrise shall have the right to purchase 50%
of the NSR (i.e. 1% NSR interest) for US$1,000,000. An area of interest applies to the
current boundaries of the Property.
For further information about the Lovelock Mine, please visit
the Company's website
at: http://www.nevadasunrise.ca/projects/lovelock-cobalt-mine/
Geology and Mineralization of the Lovelock Mine
The rocks of the Lovelock Mine area include highly altered
sedimentary and volcanic rocks cut by a larger mass of diorite and
by aplitic dikes, all of which are now highly altered. The altered
volcanic rocks lie in a syncline bordered on the west, north and
east by the altered sedimentary rocks. Probable faults, inferred
from the nature of the contacts, form the boundaries between the
sedimentary and volcanic rocks northwest of the Lovelock Mine.
The cobalt and nickel minerals of the Lovelock Mine and the
nearby Nickel Mine occur in stringers that cut the rock immediately
surrounding the diorite. In the case of the Lovelock Mine, the
stringers cut a highly-altered greenstone. The minerals recognized
are tetrahedrite, erythrite (cobalt bloom), azurite, and green
crusts that contain copper and nickel arsenates and sulphates.
Other sources reported the principal mineral present is cobaltite.
It was postulated by historical observers that there has been
post-mineral faulting with downthrow on the west, and that the
extension of the productive zone is west of the Lovelock Mine shaft
and at greater depth than the historical workings could reach
(Source: "Nickel Deposits in Cottonwood Canyon, Churchill County, Nevada", H.G. Ferguson, 1939).
John R. Kerr, P. Eng., is the
Company's designated Qualified Person within the meaning of
National Instrument 43-101 and has reviewed and approved the
technical information contained in this news release. Readers are
cautioned that the technical information described in this news
release is historical in nature; however, the information is deemed
credible and was produced by professional geologists of the eras
discussed.
About Nevada Sunrise
Nevada Sunrise is a junior mineral exploration company with a
strong technical team based in Vancouver,
BC, Canada, that holds
interests in nine gold and lithium mineral exploration projects in
the State of Nevada, USA.
The Company's two key gold assets include a 100% interest in the
Golden Arrow project near Tonopah,
currently the subject of an option earn-in transaction with Emgold
Mining Corporation (TSXV: EMR) and a 21% interest in a joint
venture with Liberty Gold Inc. (TSX: LGD, formerly Pilot Gold Inc.)
at Kinsley Mountain near Wendover,
with each of the properties subject to certain production
royalties.
Nevada Sunrise began acquisitions of Nevada lithium properties in September 2015, which includes options to earn
100% interests in the Neptune project (Resolve Ventures, TSXV: RSV
owns a 25% interest in Neptune), the Clayton Northeast and Triton
projects, and a 100% interest in the Aquarius project, all located
in the Clayton Valley area. The Company also holds options to earn
100% interests in the Jackson Wash and Atlantis lithium projects,
and holds a 50% interest in the Gemini lithium project, each
located in playas proximal to the Clayton Valley. In 2016 and 2017,
Nevada Sunrise optioned six of its Nevada lithium projects to Advantage Lithium,
who now owns a 70% participating interest solely in the Clayton
Northeast and Triton projects – those two projects are the
currently the subject of an agreement to purchase by Pure Energy
Minerals Ltd. The Company's Atlantis project is under option to
American Lithium Corp. (TSXV: LI).
Forward Looking Statements
All statements in this release, other than statements of
historical fact, are "forward-looking information" with respect to
Nevada Sunrise Gold Corporation ("Nevada Sunrise") within the
meaning of applicable Canadian securities laws, including
statements that address future mineral production, reserve
potential, exploration drilling, the future price of gold and other
metals and minerals, potential quantity and/or grade of minerals,
potential size of a mineralized zone, potential expansion of
mineralization, the timing and results of current or future mineral
resource estimates, or other study, proposed exploration and
development of our exploration properties and the estimation of
mineral resources. Forward-looking information is often, but not
always, identified by the use of words such as "seek",
"anticipate", "plan", "continue", "estimate", "expect", "project",
"predict", "potential", "targeting", "intends", "believe",
"potential", and similar expressions, or describes a "goal", or
variation of such words and phrases or state that certain actions,
events or results "may", "should", "could", "would", "might" or
"will" be taken, occur or be achieved. These statements involve
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievement of Nevada
Sunrise to differ materially from those anticipated in such
forward-looking information.
Such factors include, among others, risks related to the
interpretation and actual results of historical work at the
Lovelock Mine property, reliance on technical information provided
by third parties on any of our exploration properties, including
access to historical information on the Lovelock Mine property,
current exploration and development activities; changes in project
parameters as plans continue to be refined; current economic
conditions; future prices of commodities; possible variations in
grade or recovery rates; failure of equipment or processes to
operate as anticipated; the failure of contracted parties to
perform; failure of Nevada Sunrise to complete anticipated work
programs; labor disputes and other risks of the mining industry;
delays in obtaining governmental approvals, financing or in the
completion of exploration, as well as those factors discussed in
the section entitled "Risk Factors" in the Company's Management
Discussion and Analysis for the Nine Months ended June 30, 2017, which is available under Company's
SEDAR profile at www.sedar.com
Although Nevada Sunrise has attempted to identify important
factors that could cause actual actions, events or results to
differ materially from those described in forward-looking
information, there may be other factors that cause actions, events
or results not to be as anticipated, estimated or intended. There
can be no assurance that such information will prove to be accurate
as actual results and future events could differ materially from
those anticipated in such statements. Nevada Sunrise disclaims any
intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise. Accordingly, readers should not place undue reliance
on forward-looking information.
Forward-looking statements are made as of the date hereof and
accordingly are subject to change after such date. Except as
otherwise indicated by Nevada Sunrise, these statements do not
reflect the potential impact of any non-recurring or other special
items or of any dispositions, monetizations, mergers, acquisitions,
other business combinations or other transactions that may be
announced or that may occur after the date hereof. Forward-looking
statements are provided for the purpose of providing information
about management's current expectations and plans and allowing
investors and others to get a better understanding of our operating
environment. Nevada Sunrise does not undertake to update any
forward-looking statements that are included in this document,
except in accordance with applicable securities laws.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of TSX Venture Exchange) accepts responsibility for the
adequacy of accuracy of this release. The Securities of Nevada
Sunrise Gold Corporation have not been registered under the United
States Securities Act of 1933, as amended, and may not be offered
or sold within the United States
or to the account or benefit of any U.S. person.
SOURCE Nevada Sunrise Gold Corporation